13 Tips to Finding the Right Tax Preparer for Your Team

Understanding the Importance of a Skilled Tax Preparer

Not all tax preparers are created equal. The expertise and approach of your tax professional can lead to substantial savings. For instance, I've identified average potential savings for clients that include $23,750 in annual tax savings, $5,000 in audit defense, $10,000 in reduced audit assessments, $50,000 in decreased legal fees, and $3,000 in lowered tax preparation fees, totaling an average of $91,750 in savings (National Society of Accountants). Your choice in a tax preparer can indeed make a significant difference.

Identifying What Success Means to You

Before you begin your search, consider what a successful tax return looks like for you. This could mean paying the least amount of tax legally, minimizing preparation fees, or reducing audit risk. Your priorities will shape the type of tax professional best suited for your needs.

Seeking Tax Minimization

If paying the least amount of tax legally is your goal, your tax preparer should:

• Possess a deep understanding of tax laws and creative legal strategies.
• Ask detailed questions to grasp your situation and objectives.
• Implement a review process involving another professional to identify additional tax-saving opportunities.

Questions to Ask Potential Tax Preparers:

1. Industry Experience: Can you share your experience with clients in my industry?
2. Team Expertise: Who will be working on my tax return?
3. Review Process: What is your tax return review process?
4. Past Return Analysis: What would you have done differently on my past tax return?
5. Savings Potential: How much can you save me in taxes?
6. Client Deadlines: What deadlines do you impose on clients?
7. Tax Law Updates: What recent tax law changes should I be aware of?

Reducing Preparation Fees

To minimize tax return preparation fees, your tax preparer should:

• Concentrate on tax-related tasks and recommend others for non-tax work.
• Request information in a specific format.
• Encourage online data entry for efficiency.

Cost-Saving Questions:

1. Fee Reduction Strategies: What can I do to reduce my tax return preparation fees?
2. Fee Structure Clarity: What is your fee structure?

Lowering Audit Risk

A tax preparer focused on reducing audit risk should:

• Be well-versed in tax law and proper reporting methods.
• Stay informed about IRS focus areas and red flags.
• Offer an audit defense plan.

Audit-Related Questions:

1. Audit Experience: How many audits have you been through, and what triggered them?
2. Audit Outcomes: What were the outcomes of those audits?
3. Audit Defense: Do you offer an audit defense plan?
4. Accuracy Review: What is your tax return review process for accuracy?

Conclusion: The Value of the Right Tax Preparer

Choosing the right tax preparer for your team is more than just a financial decision; it's a strategic move that can lead to significant savings and peace of mind. With the average savings I've found for clients exceeding $90,000, it's clear that the right tax professional can make a substantial difference. Be selective and ensure that your tax preparer aligns with your financial goals and priorities.